Falling oil prices set back Aveva who warn of results hit

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Aveva is the latest company to suffer from falling oil prices. (Source: Youtube.com/avevagroup)

Engineering software firm Aveva has warned investors sales have been stuttering due to falling oil prices.

The company is reliant on the oil and gas market for 45 per cent of its revenues, but says it is now “experiencing increased uncertainty and reduced visibility” in the sector which has been “exaggerated recently by the sharp decline in oil price”.

Many companies in the oil and gas sector have been working under budget constraints in recent months, as the price of crude oil has fallen to below $50 a barrel. The company added that there has been “subdued” growth other end markets, such as the power and marine sectors.

Despite the setbacks, however, Aveva maintains a strong balance sheet and finished 2014 with net cash of £120m.